The Federal Reserve's decision to cut interest rates by 25 basis points brings the benchmark rate down from 5.25%-5.5% to 5.0%-5.25%. This is the third consecutive rate cut since September 2024. However, market focus has long shifted away from the rate cut itself and is now more concerned with the future policy direction.
Simple and straightforward interpretation of the key points:
1. No surprises with the rate cut, neutral stance set
The 25 basis point cut fully aligns with market expectations of 100%, confirming a dovish stance but not leaning hawkish or dovish overall, representing a purely